Financial Crime World

Freezing of Assets: What to Do If Your Property or Funds Are Frozen

In the event that your property or funds are frozen due to a designation by the Anti-Money Laundering Council (AMLC) or the Anti-Terrorism Council (ATC), there are steps you can take to withdraw a portion of your assets to cover basic and necessary expenses.

Consequences of Breaching Sanctions

Violating sanctions imposed by the Philippine government can result in serious consequences. Under Republic Act No. 9160, individuals who engage in transactions with designated persons or entities may be imprisoned for up to one million pesos and fined up to five hundred thousand pesos.

  • Failure to comply with a freeze order issued by the AMLC may result in imprisonment and fines of up to five hundred thousand pesos.
  • Administrative sanctions may also be imposed on covered institutions.

Relevant Regulators and Contact Information

The ATC is responsible for implementing the Anti-Terrorism Act of 2020 and designating individuals and organizations as terrorists. The AMLC, on the other hand, is responsible for investigating the financing of terrorism and issuing freeze orders.

  • For registration and authorization concerns regarding strategic goods, contact the Strategic Trade Management Office (STMO) at stmoinfo@dti.gov.ph.
  • For compliance concerns, contact stmo_icd@dti.gov.ph.

What to Do If Your Property or Funds Are Frozen

If your property or funds are frozen, you may file a verified petition with the Court of Appeals or the AMLC to withdraw an amount sufficient to cover basic and necessary expenses, including those covered by authorized dealings.

  • According to Section 7 of Republic Act No. 9160, individuals whose property or funds have been frozen may file a verified petition with the Court of Appeals or the AMLC.
  • This allows you to withdraw a portion of your assets to cover essential expenses while still maintaining the integrity of the freeze order.

Contributor

This article was contributed by SyCip Law Center, a law firm with expertise in anti-money laundering and counter-terrorism regulations. For more information on this topic or other legal concerns, contact info@sykip.com.